According to analysts at MUFG Bank, the Indian rupee is likely to depreciate moderately due to an imminent strengthening of the US dollar. They forecast USD/INR at 82,300 by the end of the first quarter of next year and 80,500 by the third quarter. KEY QUOTES: „Following gains in most emerging Asian countries, the INR rose slightly last month and Indian stocks rose modestly. The benchmark BSE Sensex gained 3.2% to 62,858 as foreigners bought $3.11 billion in November indian stocks Declines in crude oil prices also supported the currency. “The RBI is likely to raise the repo rate by 50 basis points in its next meeting on December 7. to further curb inflationary pressures. As inflation picks up and remains within the central bank’s target range, RBI is likely to keep rates steady for some time and shift the focus to growth. „In the near term, we see fundamental factors such as the US. Fed rate, strengthening of the US dollar, trade deficit and India’s widening fiscal deficit are likely to weigh on the INR and the China factor may also add USD/INR movement. to which volatility.. The strengthening of the INR is likely to happen when the Fed reverses and the US dollar begins to weaken in Q2 2023. We expect USD / INR to close at 82,000 this year and 79,800 next year.